Dollar falls, as bitcoin approaches $ 50,000

Stock markets recorded mixed results, the dollar fell and oil stabilized on Tuesday, while Bitcoin closed at $ 50,000 for the first time as investors interacted with US stimulus and the development of a Covid vaccine.

Bitcoin dollar

The major stock indices in Asia closed higher, with Tokyo hitting a 30-year high, while Europe was largely stable in the middle stage.

Wall Street ended new highs overnight, but the dollar hit its lowest level in nearly three months against the British pound on Tuesday.

While stocks are benefiting from expectations of a strong economic recovery, optimism is dampened by the delay in the massive US stimulus plan.

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President Joe Biden's $ 1.9 trillion bailout bill is also seen to increase concerns about global inflation, which are starting to be fueled by high oil prices and the prospect of massive consumer spending after the lockdowns.  

While contributing to the dollar's weakness, inflation expectations are helping gold, which is a traditional store of value.

It can't be helped that despite all this optimism, the real elephant in the room is what happens if oil prices continue to rise at the current rate," said Michael Hewson, chief market analyst at CMC Markets UK.

The benchmark contract for Brent North Sea crude remained at its highest in 13 months above $ 60 on Tuesday thanks to rising demand expectations as economies reopen.

"Oil fundamentals are looking strong again on the supply and demand sides," said Edward Moya, an analyst at Oanda Trading Group.

Despite the drop in demand by about five million barrels year on year, optimism is high that the launch of the vaccine will normalize major parts of the global economy.

Meanwhile, bitcoin rose to a new high of $ 48,215.83 after gaining massive support on Monday following news that Elon Musk's electric car maker Tesla has invested $ 1.5 billion in the cryptocurrency.

Axi strategist Stephen Innes said overall market sentiment was also boosted "by an optimistic combination of holiday season earnings and optimism from vaccines."

He added that the vaccination campaign "provides an ultimate safety net for recovery that allows people to participate in all pre-Covid activities, such as the simple fun of going to the movies or going out to eat."

In another sign of optimistic times, crisis-ridden Japanese Nissan has updated its full-year forecast for the second straight quarter as the global auto industry shows signs of recovering from the coronavirus pandemic.

Key numbers around 1200 GMT 

London - FTSE 100: Flat at 6,521.90 points

Frankfurt - DAX 30: 0.4% down at 13999.07

Paris - CAC 40: apartment, priced at 5684.66

EURO STOXX50: + 0.2% to 3657.34

Tokyo - Nikkei 225: + 0.4% to 29,505.93 (close)

Hong Kong - Hang Seng: + 0.5% to 29,476.19 (close)

Shanghai - Composite: up 2.0% at 3,603.49 (close)

New York - Dow: Up 0.8% at 31,385.76 (close)

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Pound / Dollar: Up to $ 1.3777 from $ 1.3741 at 2150 GMT

EUR / USD: Up to $ 1.2102 from $ 1.2049

Euro / Pound: up to 87.84 pence, from 87.67 pence

USD / JPY: down to 104.69 yen from 105.22 yen

Brent North Sea crude: fixed at $ 60.55 per barrel

West Texas Intermediate: Down 0.2% at $ 57.83 a barrel

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